The Constitutional Court, Germany's highest, ruled last week that Chancellor Olaf Scholz's government had acted improperly by taking money borrowed in 2020 to combat the coronavirus pandemic and shifting it to a new fund to finance environmental projects and green technology.
The halt in new spending authorizations applies to all ministries. It also covers a special fund of about 200 billion that was set up to support companies in the aftermath of the pandemic and the energy crisis ignited by Russia's war in Ukraine.
The economy minister, Robert Habeck, issued a dire warning of the ruling's impact, even as Mr. Scholz raced to work out a solution. The core substance of the German economy is at stake, Mr. Habeck said Monday in an interview with German public radio broadcaster Deutschlandfunk. Economists warned on Tuesday th...
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